KEY TAKEAWAYS: A federal judge denied First Horizon‘s request for a preliminary injunction against an MCBANK executive. The lawsuit alleges Karl Hoefer improperly recruited First Horizon employees after leaving the company. The court found the stock agreement did not expressly prohibit emplo yee solicitation, according to the ruling. The underlying lawsuit seeking monetary damages remains pending in federal court.   A federal judge has denied First Horizon Corp.’s request for a preliminary injunction that sought to prevent an MCBANK executive and an affiliated investment group from recruiting First Horizon employees, according to MC Bancshares Inc. The ruling, issued May 29 by U.S. District Judge Brian Jackson, stems from a lawsuit First Horizon filed in February against Karl Hoefer, MCBANK’s Louisiana and Texas regional president, and DMMS Holdings LLC. First Horizon alleged that Hoefer violated the terms of a stock award agreement after resigning from the company in January 2026. According to the complaint, the agreement prohibited Hoefer from soliciting First Horizon employees, and the company sought a preliminary injunction to halt further recruiting efforts while the litigation proceeds. The lawsuit also seeks monetary damages under several legal theories. In announcing the ruling, MC Bancshares said the court rejected First Horizon’s interpretation of the stock agreement. Keri Bonfili, director of PR and media relations for First Horizon, said by email June 9 that First Horizon does not “provide commentary on legal matters.” According to the court order cited by the MCBANK, Judge Jackson found that the grant notices “do not contain an express prohibition on employee solicitation.” Instead, the judge wrote that the agreements contemplate the possibility that Hoefer could recruit First Horizon employees, requiring only that he forfeit certain equity awards if he chose to do so. “On the record currently before the Court, the Court agrees with [Hoefer and DMMS’s] interpretation of the Grant Notices,” Jackson wrote in the ruling. Hoefer joined MCBANK after serving as First Horizon’s executive vice president and Louisiana and Texas regional president from 2020 until his resignation earlier this year. MC Bancshares Chairman and CEO Daryl Byrd said the company welcomed the ruling and remains focused on expanding its banking franchise throughout the Southeast. The company also highlighted the financial backing behind its recent acquisition. According to MC Bancshares, DMMS Holdings raised more than $225 million through a private placement before an affiliated entity, DMMS Purchaser Inc., acquired MC Bancshares for $104 million. The company said the additional capital leaves the bank with shareholders’ equity exceeding 30% of its balance sheet. Founded in 1955 and headquartered in Morgan City, MCBANK is a community bank serving personal and commercial customers across the Southeast. The litigation between First Horizon and the defendants remains pending. ...read more read less